Why Invest in Annaly

Annaly Capital Management, Inc. has a demonstrated track record of outperformance, beating the S&P 500 in terms of weekly total return by more than three times and the mortgage REIT sector by more than five times since the company’s initial public offering in 1997. At approximately 17 times the size of the median mortgage REIT by market cap, Annaly is able to efficiently diversify investments in over twenty-five distinct asset types across four businesses. Taking a holistic view to asset selection and hedging strategies among its four business lines allows Annaly to achieve relative stability in both book value and earnings versus competitors. Annaly’s size relative to peers allows the company to act as a potential consolidator, demonstrated by Annaly’s $1.5 billion acquisition of Hatteras Financial Corp., in 2016, a landmark transaction in the industry. In addition to its size and scale, the company has continued to prioritize operating efficiencies, with significantly lower expense ratios relative to industry peers. All of these qualities combined have attracted the attention of prominent institutions, including leading equity and bond fund managers, and have provided a compelling argument for ownership in Annaly over time.

Dividend Stability

14 Consecutive Quarters of Stable Dividends

Size and Liquidity

Approximately 17x Size of Median mREIT by market cap

Returns to Shareholders

Nearly $15 Billion Paid to Shareholders in Dividends Since IPO

Diversification Strategy

Businesses Designed to Produce More Stable Earnings and Book Value

Consolidator

Largest mREIT Acquisition in History which exemplified Ability to be Opportunistic

Conservative Leverage

Conservative Leverage Profile with a Variety of Potential Financing Sources for Each Investment Group

Premium Yield with Downside Protection

Durability of Book Value Supported by Diversification, Asset and Hedge Selection

Management / Employee Stock Ownership

Significant Management Share Purchases; Unique Employee Stock Ownership Guidelines

Operating Efficiency

Highly Efficient Operating Expense Model

Track Record

Outperformed S&P 500 by ~3x and Bloomberg mREIT Index by ~5x Based on Weekly Total Returns Since IPO

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